Here's a challenge to OWS - benefits

Ministers are considering alternatives to an inflation-linked rise to benefits, government sources have said.

Benefits are due to go up by 5.2% from next April, in line with September's inflation figures.

But the government is worried about the cost of such hikes and the impact on public opinion given the current low wage increases.

Deputy Prime Minister Nick Clegg said the government would "not balance the books on the backs of the poor".

He said "difficult decisions" would have to be taken, but he would not "provide a running commentary on decisions and debates which haven't even been held in government yet".

Sources would not say what other options were being considered instead of an inflation-linked rise. It is not thought that any change to the planned 5.2% rise in pensions is being considered.

The BBC News channel's chief political correspondent Norman Smith said one possible option could be raising benefits in line with the average inflation rate for the year, rather than the September figure.

Freezing payments
The Financial Times is reporting that Chancellor George Osborne has asked officials for alternative models, including a rise in line with average earnings growth of about 2.5% or freezing some payments.

It is understood the government will have "resolved" the options by early December when the uprating of benefits is presented to Parliament.

The Institute of Fiscal Studies has calculated that the 5.2% September inflation figure will add £1.8bn to welfare spending next year.

It said freezing all benefits and pensions would save about £10bn and linking benefits increases to wage rises would save £5bn.

A further option of switching from the September inflation figure to an average inflation figure calculated over six months could save about £1.4bn, the IFS added.
SOURCE - BBC
===========

Let's see OWS - and the fabled 99% fiercely support raising benefits at least in line with inflation. If they don't, then they are acquiescing in a cut to the income of the very poorest.

This is a big challenge to the notion that the 99% support social solidarity, and protection for the poorest. We shall see. I don't hold any expectation that benefits will rise in line with inflation - none whatsoever. Nor do I expect the country at large to support doing so: the supposed class solidarity of the 99% is a myth.